Millions of Americans Risk Losing $700+ in Healthcare Savings if Congress Fails to Act

Millions of Americans could face higher healthcare costs and potential loss of coverage if Congress fails to extend the enhanced premium tax credits set to expire in 2025. These credits, introduced under the American Rescue Plan Act of 2021 and later extended by the Inflation Reduction Act, have played a crucial role in making health insurance more affordable. If they are not renewed, experts warn that premiums could skyrocket, putting financial pressure on low- and middle-income families across the country.

What’s at Stake?

According to a report from the Kaiser Family Foundation (KFF), nearly 20 million Americans currently benefit from these tax credits, which significantly lower their monthly health insurance premiums. Without congressional action, the following consequences are expected:

• Loss of Coverage – Roughly 4 million people could become uninsured due to unaffordable premiums (Health Affairs).
• Rising Premiums – Americans who rely on these subsidies could see their premiums increase by 90% or more in 2026 (Centers for Medicare & Medicaid Services).
• Financial Burden – Households that benefited from tax credits could effectively experience a $700 or more increase in healthcare costs annually (Congressional Budget Office).

Background: The Role of Enhanced Tax Credits

Before these enhanced tax credits were implemented, many low- and middle-income families struggled to afford health insurance through the Affordable Care Act (ACA) Marketplace. The American Rescue Plan temporarily increased these subsidies in 2021, ensuring that more people—especially those who were previously ineligible—could access affordable coverage.

The Inflation Reduction Act extended these benefits through 2025, but their future remains uncertain. If Congress does not act, the tax credits will revert to pre-pandemic levels, significantly increasing costs for millions of Americans.

Who Will Be Affected the Most?

The expiration of these tax credits would disproportionately impact:

• Low- and Middle-Income Households – Families earning between 100% and 400% of the federal poverty level (FPL) will experience the highest cost increases.
• Older Americans – Adults aged 50-64 could see their premiums increase dramatically, as they typically have higher insurance costs.
• Self-Employed and Gig Workers – Many individuals who purchase insurance through the ACA marketplace rely on these subsidies to keep their healthcare affordable.

The Potential Economic and Healthcare Impact

Beyond increasing financial strain on individuals, the loss of tax credits could have broader economic and public health consequences. Hospitals and healthcare providers might see a surge in uncompensated care, as more uninsured individuals delay necessary medical treatment. Additionally, higher uninsured rates could lead to worsening health outcomes, increasing the burden on emergency rooms and public health systems.

What’s Next? Can Congress Prevent This?

Healthcare advocates and policymakers are urging Congress to make these tax credits permanent or extend them beyond 2025. Failure to act could result in a significant rollback of healthcare gains achieved since the ACA was implemented.

While some lawmakers argue that extending these tax credits would increase government spending, others point out that keeping them could lead to long-term economic savings by reducing emergency care costs and improving overall public health.

What Can Consumers Do?

If you currently receive tax credits for your ACA marketplace plan, here’s how you can prepare:

1. Stay Informed – Follow updates from government agencies like HealthCare.gov (HealthCare.gov) and the Centers for Medicare & Medicaid Services (CMS) (CMS.gov).
2. Explore Other Options – If tax credits are not extended, check if you qualify for Medicaid or other state-sponsored programs.
3. Contact Your Representatives – Reach out to your congressional representatives to express support for continuing these tax credits.
4. Review Your Budget – Plan for potential increases in premiums and explore employer-sponsored health plans if available.

Conclusion

The future of these vital tax credits remains uncertain, but the potential impact of their expiration is clear: millions of Americans could face rising premiums, financial hardship, and loss of coverage. As Congress debates whether to extend these benefits, healthcare affordability remains a pressing issue for millions of households across the country.

For now, individuals should remain vigilant, stay informed, and prepare for possible changes in their healthcare costs. If Congress does not act, the affordability of health insurance could take a significant hit—one that could leave millions struggling to afford essential healthcare services.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.